McKinsey report: China can lead the battle against climate change

As many as 45 million people in China will be affected by extreme heat in 2030 if the global green house gas emissions rise at current rate, McKinsey & Company, a consultancy, said in a new report on Friday.

For China, the annual share of outdoor working hours lost to extreme heat and humidity would increase from 4 percent today to as much as 6.5 percent in 2030, equivalent to a loss of $1 trillion in GDP, it said.

It further predicted that once-in-50-years heavy precipitation is expected to be two to three times more likely in 2030, compared with that in 1980.

While complimenting China for its vigorous response to climate change, the report, Leading the battle against climate change: Actions for China, proposed ways for the country to lead global decarbonization in line with the Paris Agreement.

Its methods include improving energy efficiency, optimizing industry, implementing circular economy and encouraging shift in consumer patterns.

It also suggested reforming agricultural and food systems to reduce non-CO2 emissions, such as methane and nitrous oxide, and leveraging on financial innovation, such as climate risk insurance and fund, to promote eco-friendly projects and mitigate the climate cost that would burden taxpayers.

"In the international sphere, China could support global discussions to set standards on an effective carbon mechanism and pricing. China could also shape development financing and help support a low-carbon future globally," Jonathan Woetzel, director of McKinsey Global Institute, said.

Li Runqi contributed to the story.